According to Reuters, Israeli Finance Minister Bezalel Smotrich has extended a waiver that allows cooperation between Israel’s banking system and Palestinian banks in the West Bank.

The previous waiver was set to expire imminently. It allows Israeli banks to process shekel transactions, particularly for transactions with the Palestinian financial system, including facilitating salary payments.

The Israeli shekel is the primary currency used in Palestinian territories. Official data indicates that in 2023, some NIS 53 billion were exchanged in Palestinian Authority banks.